Biotech firm among success stories in evolving Chengdu

Panda Rong Rong’s hometown, Chengdu, announced new policies last month that include a 2-billion-yuan ($306 million) fund to attract global talent for innovation-based projects and startups. Three entrepreneurs received support from the local government tell of their recent experience of living in the city.

The 2015 Chengdu Global Innovation and Entrepreneurship Fair in Chengdu, Sichuan province, in November. The capital is a fervent supporter of startups and businesspeople.

The saying, “shao bu ru shu”, meaning “Do not go to Sichuan in your youth”, refers to the days when inland province was isolated.

Today, however, a growing number of people are visiting or staying in the province as the capital, Chengdu, develops into an economic focal point in western China and a center of innovation and entrepreneurship.

The Tianfu Software Park in the Chengdu High-tech Industrial Development Zone is a cluster of startup companies. photos provided to China Daily

Li Jin, former global director of compound and computational sciences at the pharmaceutical company AstraZeneca, came to Chengdu to establish HitGen several years ago, a biotech company in the Chengdu High-tech Zone.

Li finished his undergraduate studies at Sichuan University in 1982 before going to the United Kingdom to further his education and he remained in the U.K. for 20 years. He became a U.K. citizen and is a fellow of the Royal Society of Chemistry.

After participating in collaborative work with researchers from China, Russia and India several years ago, he saw firsthand how far the biopharmaceutical industry in China had advanced.

During a biopharmaceutical forum in Chengdu, Li came up with the idea of creating his own company. He researched Chengdu and held talks with city officials.

In February 2012, with the support of the Chengdu government, Li established HitGen at the newly built Tianfu Life Sciences Park, a biomedical research and development center there.

There were few such firms then, but now the park is home to more than 200 biopharmaceutical companies.

Li said he chose Chengdu because of the city’s strong support and its solid foundations in biotechnology.

“As a hub in western China, one big advantage for Chengdu is the numerous universities and research institutes,” he said.

The city is home to 53 universities, 30 national-level research institutes and 76 provincial- and national-level laboratories. The West China Medical Center of Sichuan University and its many hospitals and research arms are the country’s top medical schools and hospitals.

The Chengdu government provided Li’s startup projects with plenty of support, including free office space for three years, setup funds and various subsidies. The company has thus far received more than 30 million yuan ($4.6 million) in financial support from the city government.

In addition to government support, HitGen also obtained private funding for its establishment.

Li said Chengdu has myriad development opportunities and a highly developed transport network. Half of the company’s 120 employees are from places outside Sichuan, including overseas.

 Since its establishment, HitGen has signed cooperation deals with more than 10 global biopharmaceutical firms. It also signed 50 million yuan in deals in the latter half of last year and is now negotiating a 100-million-yuan contract.

Li said the company has 30 biotech drugs in the pipeline, of which three are in pre-clinical testing in preparation for investigational new drugs applications.

Li said he is considering setting up two branches, one in Boston.

He is still considering where to locate the other one. He said he may locate it in Oxford or Cambridge, to create deeper global cooperation.

He also plans to build a large laboratory in Chengdu with the world’s top 10 biopharmaceutical companies.

'Thirsty' for talent

Li is a prime example of Chengdu and its many bringing in top talent from home and abroad.

By the end of last year, Chengdu had recruited 34 academicians and 169 national-level experts through China’s 1,000 Talents Project. Those figures lead the nation.

To attract more talent, Chengdu announced on Feb. 14 that it had adopted 10 new policies and would establish a fund of up to 2 billion yuan.

The new policies are expected to lure more human resources like Li from around the world, making the city a top choice for top professionals to bring forth new ideas or start businesses in western China, according to local officials.

Jing Bin, head of the city’s human resources office, said Chengdu, which he said “is at a key point where it is transforming into an innovationdriven economy”, is “thirsty” for quality people.

“The move is expected to help the city implement the Venture Tianfu project, which would build the city into western China’s core area for top personnel and an innovation and entrepreneurship center of global influence.”

According to the new policies, recruited talent deemed by the city government to be at an “international top level” would receive grants of up to 3 million yuan; recruits recognized as national-level talent would be eligible for 2 million yuan; while leading talent at the regional level would net 1.2 million yuan.

Jing said the city plans to subsidize five top projects every year.

For Nobel Prize laureates who launch startups in Chengdu, the financial aid could reach up to 50 million yuan.

For those national or international strategic projects, the funding could reach up to 100 million yuan.

Enterprises, public institutes and intermediaries are being encouraged to attract talent to Chengdu with rewards of up to 200,000 yuan per recruit.

The city is also looking to boost partnerships among enterprises, universities and government agencies to attract more talent from home and abroad and create better conditions for the establishment of high-tech startups.

“Chengdu also plans to set up a China (Chengdu) overseas personnel offshore innovation and startup center,” said Jing, adding that it will help to industrialize and commercialize high-tech innovations.

Another new policy is loans totalling 10 billion yuan would be distributed. A company headquartered in Chengdu that garners a listing on a bourse would get a financing loan of up to 5 million yuan.

The new policies will also support the commercialization of innovative products. Local companies and government authorities that buy these products could be subsidized for up to 25 percent of costs on first orders, with a maximum subsidy of 5 million yuan.

High-level services

Government departments in Chengdu will also provide their services to support innovation and entrepreneurship.

The China (Chengdu) Human Resources Service Park, industry incubation platforms, scientific and technological innovation service platforms and service platforms are now being planned.

City leaders said it is also working to improve services for household registration, housing and healthcare.

Talent deemed by the city’s human resources office as “high level” is eligible to receive free accommodation of up to 2,152 square feet or a government subsidy to be used on rent or the purchase of a home.

More companies and organizations are being allowed to employ foreign experts.

These experts’ spouses and children would be eligible for five-year residence documents or multiple-entry visas.

The city also plans to set up service centers in areas with dense populations of foreign residents, offering registration and visa consultation services.

A 1-million-yuan award called the Chengdu Excellent Personnel has also been established to honor a recruited talent who has stayed in Chengdu for at least five years and made “great contributions”.